Retail demos boost DNE's Australian citrus program
Retail demos boost DNE's Australian citrus program
CULVER CITY, CA -- Australian citrus growers toured 50 major supermarkets in California as part of the annual promotions of the only Australian citrus program in the United States, run for the past 16 years by DNE World Fruit Sales in Fort Pierce, FL.
"This is the first push we've done that's involved growers," Stu Monaghan, DNE's national sales manager, told The Produce News. "Normally we run promotions by offering retailers a great price to push a few varieties and tell consumers about the items in the newspapers and in-store signage. It's a huge boost to moving produce."
Commenting on DNE's in-store promotions this year, Mr. Monaghan said, "We got personal with the customers this year, as much as we could afford, because there is more and more competition each year, and we wanted to set our citrus apart."
The promotions targeted the West Coast because that is the biggest U.S. market for Australian citrus. This is due in part to the dense population in the region, but also, "when you get closer to Philly, you compete with cheaper rates of South African citrus," Mr. Monaghan said. "All of the competition comes down to freight breaks."
This year, DNE wanted to put a face to the Australian citrus name, partly in anticipation of competition from Chile, Peru and South Africa in the coming year, but also to expand grower knowledge and to see the results of a new shipping method.
This is the first year Riversun has shipped its product weekly in containers. "It's more cost-effective; fresher produce is moving in. It's a smaller influx, but greater in numbers," said Peter Walker, chairman of Riversun Export Pty. Ltd, a company with 28 packinghouses located in South Australia that works with farms in the Riverland, Riverina and Sunraysia areas.
The growers saw how their product travels, the logistics of import through the Long Beach, CA, harbor, communed with the produce managers in branches of the major chains, and saw how the items are stocked and marketed in-store, said Mr. Walker.
"Consumers were really receptive to product knowledge," Mr. Walker added. "I don't think these guys have had a negative reaction."
On the other side of the globe, Mr. Walker said, "We set up direct radio shows so that growers at home getting their morning reports could hear about the growers' experiences here."
On Aug. 16 at the Vons Pavilions in Culver City, almost everyone in the immaculate, sprawling produce department who walked past the cheerful Aussies holding plates overflowing with wedges of Minneolas, Tangelos and Navel oranges stopped, sampled and smiled. In another store, a grower offered recipes using the fruits.
Some customers asked if the growers had kangaroos on their farms, and photo albums verifying that indeed they did were proffered. A few lucky customers went home not just with a bag of sweet citrus, but also with a kangaroo pin, similar to the kangaroo logo on the Riversun box.
Grower Nicole Radloff was rather amused that many customers did not believe that she, not a male in her family, was the one who ran her farm, which trades as Ellerslie Producers. She responded enthusiastically to the experience, saying, "The variety here is amazing. It's fantastic to see my fruit on the other side of the world looking so good. Being here, I can make sure the quality assurance is on top, it's fresh, tastes good and that my pickers are picking properly."
"We felt a real warmth and friendship with the Americans," Mr. Walker added. As for DNE, the company has been happy to see the citrus program grow over the past 16 years. Mr. Monaghan calls it a privilege to have earned Horticulture Australia's designation of a "single-desk marketer."
"In 1991, the connection was made by the director of Horticulture Australia. They contacted DNE to rep Australian citrus in the U.S. In 1992, the program started," Mr. Monaghan explained.
"Early on, it was tough dealing with the mentality of seasonal sales. Then, retailers realized that it was like found sales and the quality was excellent, so the item really took off." Also, the product did not compete with California citrus as the crops are counter-seasonal.
"We started shipping 250,000 cartons of Navels the first season. That increased steadily with planting and as crops matured. Last year, it reached 1.8 million. Minneolas had their first season in the late 1990s and were up ever since. Production was up to 350,000, but we limited it to 220,000 because the Peruvian glut is coming and we needed to hold the market.
"Tangelos are selling very well due to the quality," Mr. Monaghan continued. "It's absolutely fantastic. The Australian citrus program is setting itself apart from other import programs. The eating quality is fantastic this year. There's still a decent amount of acid to give it flavor. It tastes good and looks beautiful."
From Australia, the company also imports lemons and will add blood oranges to its supply in the coming year.
Moreover, very few pesticides are used in the farming of citrus in Australia's southeastern region, with its climate comparable to Los Angeles. Rather than use pesticides, the growers most often use oils to abate the bugs.
Paradoxically, imports are down. For example, only 1.3 million cartons of Navels have been brought in this year.
"Last year was the biggest year ever," Mr. Monaghan said. "But drought prevented growers from putting water on the tree. The drought is devastating. They're living off allocation [of water] instead of what they need." If the rain starts tomorrow, Mr. Monaghan predicted that it would take "three to five years to get the same numbers as last year."
In response to this supply decrease, DNE pulled back on promotions because when they promote, they sell, and the company wanted to make sure retailers had a supply to meet the demand.
Still, the overwhelming feeling was that this in-person promotion was highly effective, though the results will come in next year when Chile is expected to have a larger hand in the market.
In all, Mr. Monaghan said, "We want people to remember what Australian citrus is: high color, great eating quality and excellent external quality. Having the growers here to give samples to the consumer, we hope to drive home Australian citrus as the finest citrus they have ever eaten."
"This is the first push we've done that's involved growers," Stu Monaghan, DNE's national sales manager, told The Produce News. "Normally we run promotions by offering retailers a great price to push a few varieties and tell consumers about the items in the newspapers and in-store signage. It's a huge boost to moving produce."
Commenting on DNE's in-store promotions this year, Mr. Monaghan said, "We got personal with the customers this year, as much as we could afford, because there is more and more competition each year, and we wanted to set our citrus apart."
The promotions targeted the West Coast because that is the biggest U.S. market for Australian citrus. This is due in part to the dense population in the region, but also, "when you get closer to Philly, you compete with cheaper rates of South African citrus," Mr. Monaghan said. "All of the competition comes down to freight breaks."
This year, DNE wanted to put a face to the Australian citrus name, partly in anticipation of competition from Chile, Peru and South Africa in the coming year, but also to expand grower knowledge and to see the results of a new shipping method.
This is the first year Riversun has shipped its product weekly in containers. "It's more cost-effective; fresher produce is moving in. It's a smaller influx, but greater in numbers," said Peter Walker, chairman of Riversun Export Pty. Ltd, a company with 28 packinghouses located in South Australia that works with farms in the Riverland, Riverina and Sunraysia areas.
The growers saw how their product travels, the logistics of import through the Long Beach, CA, harbor, communed with the produce managers in branches of the major chains, and saw how the items are stocked and marketed in-store, said Mr. Walker.
"Consumers were really receptive to product knowledge," Mr. Walker added. "I don't think these guys have had a negative reaction."
On the other side of the globe, Mr. Walker said, "We set up direct radio shows so that growers at home getting their morning reports could hear about the growers' experiences here."
On Aug. 16 at the Vons Pavilions in Culver City, almost everyone in the immaculate, sprawling produce department who walked past the cheerful Aussies holding plates overflowing with wedges of Minneolas, Tangelos and Navel oranges stopped, sampled and smiled. In another store, a grower offered recipes using the fruits.
Some customers asked if the growers had kangaroos on their farms, and photo albums verifying that indeed they did were proffered. A few lucky customers went home not just with a bag of sweet citrus, but also with a kangaroo pin, similar to the kangaroo logo on the Riversun box.
Grower Nicole Radloff was rather amused that many customers did not believe that she, not a male in her family, was the one who ran her farm, which trades as Ellerslie Producers. She responded enthusiastically to the experience, saying, "The variety here is amazing. It's fantastic to see my fruit on the other side of the world looking so good. Being here, I can make sure the quality assurance is on top, it's fresh, tastes good and that my pickers are picking properly."
"We felt a real warmth and friendship with the Americans," Mr. Walker added. As for DNE, the company has been happy to see the citrus program grow over the past 16 years. Mr. Monaghan calls it a privilege to have earned Horticulture Australia's designation of a "single-desk marketer."
"In 1991, the connection was made by the director of Horticulture Australia. They contacted DNE to rep Australian citrus in the U.S. In 1992, the program started," Mr. Monaghan explained.
"Early on, it was tough dealing with the mentality of seasonal sales. Then, retailers realized that it was like found sales and the quality was excellent, so the item really took off." Also, the product did not compete with California citrus as the crops are counter-seasonal.
"We started shipping 250,000 cartons of Navels the first season. That increased steadily with planting and as crops matured. Last year, it reached 1.8 million. Minneolas had their first season in the late 1990s and were up ever since. Production was up to 350,000, but we limited it to 220,000 because the Peruvian glut is coming and we needed to hold the market.
"Tangelos are selling very well due to the quality," Mr. Monaghan continued. "It's absolutely fantastic. The Australian citrus program is setting itself apart from other import programs. The eating quality is fantastic this year. There's still a decent amount of acid to give it flavor. It tastes good and looks beautiful."
From Australia, the company also imports lemons and will add blood oranges to its supply in the coming year.
Moreover, very few pesticides are used in the farming of citrus in Australia's southeastern region, with its climate comparable to Los Angeles. Rather than use pesticides, the growers most often use oils to abate the bugs.
Paradoxically, imports are down. For example, only 1.3 million cartons of Navels have been brought in this year.
"Last year was the biggest year ever," Mr. Monaghan said. "But drought prevented growers from putting water on the tree. The drought is devastating. They're living off allocation [of water] instead of what they need." If the rain starts tomorrow, Mr. Monaghan predicted that it would take "three to five years to get the same numbers as last year."
In response to this supply decrease, DNE pulled back on promotions because when they promote, they sell, and the company wanted to make sure retailers had a supply to meet the demand.
Still, the overwhelming feeling was that this in-person promotion was highly effective, though the results will come in next year when Chile is expected to have a larger hand in the market.
In all, Mr. Monaghan said, "We want people to remember what Australian citrus is: high color, great eating quality and excellent external quality. Having the growers here to give samples to the consumer, we hope to drive home Australian citrus as the finest citrus they have ever eaten."
